Diebold Nixdorf is partnering with Samsung SDS America to "showcase" a cardless biometric ATM this week at the Digital Banking Conference.

To use the ATM, a customer taps their NFC-enabled phone to the ATM, confirms the transaction amount, and then uses their mobile device to verify the transaction via facial recognition before receiving their cash; the product requires no card or PIN. The device will be piloted by Banco Popular de Puerto Rico this summer.

The move provides two key benefits, according to a company press release:

Faster transactions: Transactions made via the new ATM cut transaction time by more than half, according to a company press release. This increases convenience, and could cut lines and ultimately allow banks to serve more customers in a given day. In addition, customers using cardless ATMs tend to complete 1-2 additional transactions per month. These boosts in usage could increase revenue for banks, through ATM fees or other services obtained by increased interaction and engagement.

Improved security: ATMs are ripe with fraud — 85% of US debit card fraud comes from a compromised ATM, a proportion which skyrocketed in the past two years. By eliminating the card and implementing biometric authentication, banks can cut down on this fraud, therefore limiting costs.

But there could be roadblocks to consumer popularity. Facial recognition technology is still new — just 11% of UK and US millennials have tried the tech, compared with 38% who have tried fingerprint scanning, figures that drop among older consumers. Consumer unfamiliarity could lead to some discomfort and ultimately turn off potential users. And NFC-based mobile wallets are also unpopular, which could turn off consumers unfamiliar with tapping-to-pay.

Though mainstream banks are also implementing biometric-based solutions, which could ease consumer fears, Diebold will have to work to overcome perception issues to see popularity with the new offering.

Passwords and PINs are being rendered irrelevant thanks to rising digital fraud, growing concern about data privacy, and difficulty remembering an endless stream of letters and numbers. That's been leading both software and hardware firms to explore new methods of verifying user identity. One such method is biometrics — unique biological measurements that can be digitized and turned into a trackable record.

Explores different types of biometrics and evaluates differ net payments use cases

Evaluates whether security risks and other challenges will hinder adoption of biometrics

Assesses which type of biometrics will become most popular among consumers and developers moving forward

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